The Environmental, Social and Governance (ESG) Ratings Regulation, Regulation (EU) 2024/3005, has created a European legal framework for ESG ratings. The Regulation applies directly in all EU member states from 02 July 2026. Its objective is to increase the transparency, comparability and quality of ESG ratings. The European Securities and Markets Authority (ESMA) is responsible for the direct supervision of ESG rating providers, with the FMA active in a supporting capacity.
What are ESG ratings?
ESG ratings are standardised ratings of environmental, social and governance characteristics or risks established using a methodology provided to third parties about an entity financial instrument or product.
What applies as a result of the ESG Ratings Regulation?
From 02 July 2026, ESG ratings are generally only allowed to be provided and published in the European Union (EU) by regulated ESG rating providers. To do so, an ESMA authorisation must be applied for, although small ESG rating providers may make use of a three-year transition rule, and are initially only required to register with ESMA.
On 01 July 2026 ESMA published a public statement on publication or distribution of ESG ratings by third parties in the period from 2 July 2026 until authorisation, recognition or registration of ESG rating providers.
Further information can be found on the FMA website at: https://www.fma.gv.at/en/cross-sectoral-topics/sustainable-finance/esg-ratings/